Today (April 18) 19 leading food and grocery manufacturers and the Australian Food and Grocery Council (AFGC) co-signed a joint letter to prime minister Julia Gillard -citing 'concerns' about the proposed carbon pricing scheme.

Business including Laucke Flour Mills, Food Spectrum Group and Yakult Australia are among the companies backing the letter.

The letter, co-signed by dozens of leading manufacturing organisations and industry groups from export and import competing sectors, calls on Mrs Gillard to confirm the Government will 'ensure' Australia's trade exposed sector will not be unfairly disadvantaged by a carbon tax.

AFGC chief Executive, Kate Carnell, said: "As an industry, we don't oppose a price on carbon - but industry is opposed to a tax that will increase the cost of food and grocery manufacturing in Australia, which is already under intense pressure. .

"These products are already relatively cheaper as a result of the high Australian dollar - so the proposed carbon tax will just make Australian products less competitive and that will cost jobs.

"Whatever decision is made, the Government must ensure that Australian-manufactured food and groceries will not be made less competitive as a result of the carbon tax."